Anyone here good with stocks and bonds and their meanings?

**Shaze** · 12-16-2007, 04:23 AM

i think you are correct. bonds are agreements between a company and investors where investors are giving money to the company who is agreeing to pay it back at a later date with interest. so they are basically issuing bonds through the bank.

**Retributi0n** · 12-16-2007, 04:32 AM

What does that mean exactly though? They received 10 mill in cash , or have to first sell the bonds to get cash?

**infecto** · 12-16-2007, 04:35 AM

The bank gave the company 10mil the company gave the bank 10mil in bonds that can be converted into equity.

**Retributi0n** · 12-16-2007, 04:37 AM

Can any company do that? What do you think the prerequisites are for something like that?

**infecto** · 12-16-2007, 04:42 AM

Well to have common stock they need to follow many rules and regs from the sec. Other then that any company can do it. I mean corp. bonds are rated by different agencies so if they are no good it will just be a junk bond.

Anyone here good with stocks and bonds and their meanings?

Anyone here good with stocks and bonds and their meanings?

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